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Under the Five Forces Model,a Risk to a Business with a Cost-Leadership

Question 64

Multiple Choice

Under the five forces model,a risk to a business with a cost-leadership strategy is:


A) Competition switches from customer service to pricing.
B) When technological innovations open up cost reductions for substitutes or competitors.
C) New entrants are all start-up firms with low volumes.
D) Suppliers request a 2% price increase across the industry.

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